The dream of eliminating remote work for federal employees, championed by figures like Elon Musk and Vivek Ramaswamy, could backfire, according to new research from the University of Pittsburgh.
The study, led by business administration professor Mark Ma, found that companies imposing return-to-office (RTO) mandates experienced significant drawbacks:
- Loss of Top Talent: Companies that implemented RTO saw a 14% increase in employee departures, with departing workers more likely to be skilled, experienced, and female.
- Recruitment Challenges: Filling vacancies left by departing employees became more difficult, with hiring times increasing by 23% and hire rates dropping by 17%.
These findings suggest that RTO mandates could drive away valuable employees, particularly those with high demand in the job market, such as women with childcare responsibilities and highly skilled professionals.
The potential consequences for the government's proposed Department of Government Efficiency (DOGE) are significant. Implementing strict RTO policies and employee surveillance could lead to a loss of experienced government workers, potentially hindering government operations and increasing costs.
Moreover, increased employee turnover is costly for companies. Hiring and training new employees requires significant time and financial resources.
While some companies, such as Amazon and Walmart, have implemented RTO mandates, the response from employees has been mixed. Many Amazon workers have expressed dissatisfaction with the policy, with some considering quitting. The departure of Sam's Club's chief technology officer, Cheryl Ainoa, highlights the potential impact of RTO on high-level executives.
The research suggests that forcing employees back to the office may not be the most effective way to improve productivity and efficiency. Instead, it could lead to unintended consequences, such as loss of talent, increased costs, and potential harm to company culture.